How do you weigh the higher operational intensity against the potential for outsized returns in Iberia?
“We believe all real estate is moving towards a more operational model. Even in offices, with the rise of flexible working, or in retail, where differentiation and tenant stickiness depend on added services, performance increasingly hinges on what you deliver beyond the physical space.
In this sense, alternative real estate is simply further ahead of the curve. Here, performance is driven as much by the quality of the operating platform as by the real estate fundamentals. This creates both challenges and opportunities.
These segments demand specialist investors who can manage complexity and bring real expertise. Success comes from focusing on the details: platform integration, careful partner selection, strong design capabilities, control over construction, and often a dedicated operating company with the right people to address core needs and react quickly.
When this is in place, operational intensity becomes a driver of Net Operating Income and value creation, not just a risk. To be able to do that, it requires scale and the ability to look at all the details, innovate and act quickly on customers and market feedback.
Global capital often brings the playbook and scale from more mature markets, while local investors provide the regulatory and cultural knowledge, as well as the relationship base which is essential in Iberia. The winners will be those who combine both — global expertise with strong local execution — and turn higher operational intensity into a competitive feature that generates above-market returns.”